What is Australia's minimum wage and how does it compare to award rates?

What is Australia's minimum wage?

Australia's national minimum wage is the legal minimum hourly rate that most employees must be paid. From 1 July 2026, it is $26.44 per hour, which works out to $1,004.90 per week or $52,255 per year for a full-time worker. On the Salary Index, where 100 represents full-time adult ordinary-time earnings ($108,352 per year), the national minimum wage sits at 48.2—meaning it is just under half the national benchmark.

This figure applies to employees who are not covered by a modern award or registered agreement. Most Australian workers, however, are covered by an award that sets higher minimum rates. The Fair Work Ombudsman oversees compliance, and the Fair Work Commission adjusts the minimum wage each year.

How the national minimum wage compares to award rates

Modern awards set minimum pay rates for specific industries and occupations. From 1 July 2026, award rates rose by 4.75%, following the same percentage increase as the national minimum wage. The entry-level award floor is $25.74 per hour, but many award classifications pay significantly more. For example, a retail employee under the General Retail Industry Award may earn above $28 per hour depending on their classification, while the national minimum wage remains the legal floor.

Awards also include conditions like penalty rates, overtime, and allowances that can push actual earnings well above the minimum. The national minimum wage is a safety net, not a typical wage. If you are unsure which award applies, check the pay guides on the Fair Work website or use the industries page to see typical index figures for your sector.

Junior and trainee rates

The national minimum wage has special rates for employees under 21. These are calculated as a percentage of the adult rate. From 1 July 2026:

• Under 16: $9.73 per hour
• 16 years: $12.51 per hour
• 17 years: $15.28 per hour
• 18 years: $18.06 per hour
• 19 years: $21.81 per hour
• 20 years: $25.83 per hour

These percentages are set by the National Minimum Wage Order, but a modern award may specify different junior rates. Always check the relevant award first.

Casual loading

Casual employees receive a loading of at least 25% on top of the minimum wage. For the national minimum wage, that means $33.05 per hour. Awards may have different casual loadings, but they cannot be less than the national minimum.

Superannuation and tax

From 1 July 2026, the superannuation guarantee is 12% of ordinary time earnings, up to a maximum contribution base of $270,830 per year. Employers must pay this on top of wages. For a full-time worker on the national minimum wage ($52,255), that adds about $6,271 in super each year.

Income tax for 2026–27 (resident, excluding Medicare) is:

• Nil up to $18,200
• 15% from $18,201 to $45,000
• 30% from $45,001 to $135,000
• 37% from $135,001 to $190,000
• 45% above $190,000

Plus a 2% Medicare levy. A worker on the national minimum wage would pay roughly $4,467 in tax plus $1,045 in Medicare levy, leaving a take-home of about $46,743 per year. This estimate ignores HELP repayments, salary sacrifice, or the Medicare levy surcharge.

How the national minimum wage fits into the broader picture

The Salary Index compares any gross annual salary to the national line of 100. The national minimum wage at 48.2 is well below the average. For context, the average full-time adult ordinary-time earnings are $108,352 per year (index 100). Men earn $113,412 (index 104.6) and women earn $100,594 (index 92.8).

State and territory indices vary:

• ACT: 109.9 ($119,090)
• WA: 106.9 ($115,825)
• NSW: 101.2 ($109,658)
• VIC: 98.0 ($106,137)
• QLD: 97.9 ($106,064)
• NT: 95.2 ($103,173)
• SA: 94.6 ($102,450)
• TAS: 88.6 ($96,008)

Industry indices also show wide variation. Mining leads at 154.7, while accommodation and food services is 72.5. Retail trade is 75.9. These figures are gross ordinary-time benchmarks, not individual pay rates.

Why the national minimum wage matters

Even though most workers earn above it, the national minimum wage sets the floor for all pay negotiations. It protects the lowest-paid workers and influences award rates. If you are starting a new job or negotiating a pay rise, knowing the minimum wage gives you a baseline. But always check your award—it likely entitles you to more.

For more detail on how your pay compares, see the states page for regional differences or the topics page for other pay questions.